Council authorizes owner‑controlled insurance program for convention center rebuild; $58.8 million in premiums funded from interim notes

The Dallas City Council on Aug. 27 authorized the city’s owner‑controlled insurance program (OCIP/R‑OCIP) broker to purchase construction‑period insurance covering the Kay Bailey Hutchison Convention Center renovation and expansion and authorized up to $58,760,667 in interim financing for that purpose.

What the council approved: The city’s Office of Risk Management recommended centralizing insurance that would otherwise be purchased separately by contractors. The resolution approves Marsh USA LLC (the city’s OCIP/R‑OCIP broker of record) to secure lines of coverage that include commercial general and excess liability, workers’ compensation (statutory), contractors’ pollution liability, railroad protective liability (as needed), owner’s protective professional indemnity, and builders’ risk. The staff estimate in the memo presented to council put the premium/insurance program cost at roughly $36.3 million with additional related costs and contingencies bringing the authorization to approximately $58.76 million for the construction period.

Why centralize coverage: Risk management staff told council the OCIP approach typically increases market access and bargaining power, allowing the city to obtain broader limits at more favorable pricing than if individual contractors were required to market and purchase similar limits separately. Staff also said centralizing coverage can expand contractor competition by eliminating high insurance‑qualification barriers for smaller contractors.

Coverage highlights staff cited: staff and the broker described target program limits including $320 million in liability/excess limits, $50 million contractors’ pollution coverage, owner’s protective professional indemnity limits of $25 million, and builders’ risk tied to the project’s construction value (approximately $3.3–$3.5 billion as described in staff comments).

Funding: Council authorized an appropriation of up to $58,760,667 from the city’s interim financing for the convention center project (the city previously approved a bridge loan for construction financing). Risk Management said the insurance program cost will be incorporated into the project financing plan and ultimately be funded as part of the project’s capital financing structure.

Vote and next steps: The council approved the insurance authorization without a recorded roll call. Staff will direct the broker to bind policies consistent with the limits and terms authorized and will manage program implementation and claims oversight during construction.

Ending: Council members said centralized insurance would help expand competition among contractors, control total project risk, and support the city’s long‑term capital plan for the convention center reconstruction.